5. System operation and wholesale and related markets
- The Commission should promote and facilitate efficient and well-functioning markets and related arrangements for:
- common quality and real-time security
- dispatch and pool rules
- reconciliation and settlement
- information disclosure to improve market efficiency, including:
- aggregate hedge and contract prices and volumes
- offers by generators
- minimum prudential standards
- hedge market transparency and liquidity.
Transmission risk management
- The Commission should oversee the development of arrangements that will enable market participants to manage financial risk in respect of transmission losses and constraints.
- The product developed should include the following broad principles:
- realistic long-term risk management mechanisms should be made available to all parties that face financial risks arising from spot price effects caused by transmission losses and constraints;
- economic efficiency, including the integrity of price signals, should be maintained or improved; and
- solutions should be pragmatic and not overly complex to use.
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